In considering the interaction of cumulative accountancy rental excesses with relief in capital gains computations there are two points to note:

First, relief for cumulative accountancy rental excess is given against normal rent arising prior to the disposal of a lease (or of an asset representing the leased asset) in priority to relief in the capital gains computation. How this is achieved in drafting terms is explained in BLM72030.

Secondly, cumulative accountancy rental excess available for subsequent set-off against normal rent is reduced by any amount deducted in the capital gains computation on an earlier disposal.

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